Customer-centric organizations immerse themselves in the customer experience and synthesize information from multiple touchpoints to better understand the needs and motivations, in turn, creating solutions that customers do not always know they require.
FREMONT, CA: Leading businesses have long functioned under the assertion that the customer is always right, but being customer-focused does not always mean having similar thoughts as that of a customer. Customer-focused businesses ask customers what they want and deliver based on an assembled set of requirements.
According to research, around 55 percent of CIOs spend more time learning about customer requirements as a way to advance the creation of revenue-generating initiatives. At the same time, a quarter of the CIOs prioritize improvements to customer experience as one of their primary business goals.
Customer-Centricity: Today’s Business Directive
Customer-centric organizations immerse themselves in the customer experience and synthesize information from multiple touchpoints to better understand the needs and motivations, in turn, creating solutions that customers do not always know they require. The companies know exactly who their prime customers are, so they can develop a relationship that increases client lifetime value. CIOs who can deliver the initiatives and infrastructure, which support and enrich the lifetime relationship, will drive competitive benefits for their enterprise while also securing a spot on the C-suite leadership team.
So, the probable question that arrives after the occurrences is why customer-centricity important today? The simple answer is that businesses perform better when they put consumer requirements and experience at the epicenter of their business schema. Take growth, for example. According to a study, Customer Experience (CX) leaders outperformed their counterparts in revenue growth. The organizations with a customer-centric charter enjoyed a 17 percent Compound Average Revenue Growth Rate (CAGR), compared to only three percent for those shops that were slow to steer toward a CX focus.
Customer experience has also become a trademark of competitive gain. Additionally, a report also revealed that 68% of marketing leaders say their business increasingly competes based on customer experience. Most often, companies consider best-in-class, voice-of-the-customer (VOC) enterprises. Furthermore, they enjoy a more significant year-over-year increase in annual company revenue than businesses that are not as far along with the curve in hunt of CX best practices.
Increased profitability is another excellent yardstick for companies that are realigning processes, services, and products around the customer and the extensive customer experience. Besides, companies with best-in-class CX management practices accomplish year-over-year customer profit margin development about 527 percent higher than their peers.
What is driving the strategic shift toward customer-centricity? Most times, it is the customers themselves. Today’s consumers are far more well-informed and astute, with higher expectations for what they want and how it is delivered than ever before. Consumerization of technology has also raised the bar as customers are used to the seamless experiences, they expect the same frictionless commitment for all their products and services without regard to cost.
CIO’s Customer-Centric To-Do Inventory
CIOs have their work to do and lead their organizations toward customer-centricity. One significant move is to embrace a technology platform competent in unifying customer touchpoints and breaking down data silos. Such a tool needs to facilitate a unified customer view so that business stakeholders—marketing specialists or field service engineers can access data-driven insights and information that are pertinent to their position and day-to-day responsibilities. Additionally, the platform should also offer dashboards, analytics, and automation tools to help alleviate IT support and streamline manageability.
As CIOs assess the foundational technology platform, they should keep emerging technologies like advanced analytics, artificial intelligence, and machine learning capabilities at the front and center. CIOs are well placed to serve as the advocate for such cutting-edge technologies. They can educate their business counterparts and put forth the case to them on how capabilities like the Internet of Things (IoT), IT-driven automation, and data analytics can help businesses deliver on their customer-focused goals.
In addition to championing the technology transformation, CIOs also need to play an active role in structuring or changing the culture. Companies booming at a customer-centric agenda embrace higher levels of business or IT alignment and emphasize more on collaboration. Likewise, IT shops that are structured around a culture of innovation are better prepared to understand customer pain points and immersion into the overall experience. Most businesses use several tactics to keep their eye on customer desires. The tools include a customer view platform, a devoted Customer Information Systems (CIS) team and a customer advisory board.
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